At Clock Software, we do what we are best at – developing hospitality software. Our modern all-round hotel PMS in the cloud that lets you... read more
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At Clock Software, we do what we are best at – developing hospitality software. Our modern all-round hotel PMS in the cloud that lets you... read more
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Hotelogix is the latest in a line of hospitality technology vendors that have recently launched a marketplace. The thinking behind these initiatives is that existing customers should have a clear place to find integrations that work well together. By providing a source of vetted partners, hospitality technology vendors hope to improve implementations and encourage better long-term outcomes. The new marketplace features third-party solutions that integrate fully with the Hotelogix hotel management system. To navigate the latest marketplace, we’ve identified a few useful integrations for hotels of different sizes. Top Marketplace Apps for Smaller Hotels Smaller properties prioritize reasonably-priced solutions that help staff provide better service more consistently, as well as provide functionality that makes independents more competitive with chains. These properties usually have less complicated operations without on-site F&B or spas. For properties that do have those on-site amenities, many available solutions have unneeded functionality -- which can make those solutions cost-prohibitive. Training and on-boarding also take center stage, as the smaller staff can’t afford to take too much time learning a new thing. Benefits must be observed quickly and without a long ramp-up period. Here are a few solutions that integrate with Hotelogix to help smaller properties compete more effectively. #1 Tripadvisor Review Express Tripadvisor Review Express allows hotels to automate the review process -- saving time for hotels with limited staff. Rather than spending time manually asking guests for reviews, this automation means less time spent requesting reviews and increases the frequency, recency, and velocity of reviews by encouraging every guest to leave a review. When used regularly, TripAdvisor claims that “the average Popularity Ranking for highly engaged hotels was 63% higher than their non-engaged counterparts.” As this guide to Review Express emphasizes, regular reviews keep engagement high and automated templates reduce manual work. Benefits of the integration: Review Express collects all TripAdvisor Reviews of the hotel added by recent visitors and Hotelogix makes sure that these are directly displayed on the Hotelogix front desk so staff can respond rapidly. #2 Bookingsuite RateIntelligence Bookingsuite RateIntelligence is the Booking.com family’s rate manager, ideally suited for smaller properties that may not need a full-featured rate/revenue management solution. It's a cloud-based rate shopping tool that gives smaller properties an edge with access to the kind of rate intelligence used by larger brands. Smarter pricing decisions can be made based on market demand data and competitor intelligence, the Rate Manager. Benefits of the integration: Single login to access, instant access within Hotelogix to top five competitors’ rates on RateIntelligence, compare prices with competitors’ and update rates in your PMS, and single click to update rates on all your channels. #3 Intuit Quickbooks Intuit Quickbooks has evolved into a comprehensive accounting solution, which is well-positioned in price and functionality for smaller properties. Quickbooks reduces headaches around manual management of invoices, and payables. It’s simple and efficient, with a handy “at a glance” dashboard to track performance. There’s a companion expense app so you can take pictures of receipts, and pull them into Quickbooks. Also, integrates cleanly with TurboTax if you decide to tackle your taxes solo. Benefits of the integration: Individual tracking and handling of credits and commissions given to TAs & corporate clients, as well as advanced payments & payments against settlements can be managed through separate account head. #4 Mailchimp Email Marketing MailChimp’s email marketing software is simple to use and easy to access across devices. With its template and visual editor, the company has eliminated design barriers to creating classy email campaigns, as well as pre-arrival and post-stay communications. For small properties without a marketing function, the do-it-all GM can design templates, run campaigns and use analytics to get better with time. It’s generally recommended that hotel marketers work with email marketing and CRM platforms such as Revinate and Guestfolio but very small properties may not have enough guest data or return visitors to warrant specialized products. Make sure to benchmark a generalist solution like Mailchimp with specialized solutions before adopting because bad email marketing can actually cost your hotel money through unsubscribes and sendability issues. Benefits of the integration: MailChimp lists update automatically with new bookings, cancellations, check-ins, and check-outs. Data imported into the relevant list includes room type, number of rooms, rate/package type, reservation booking deposit, tax amount, country, date of birth and gender of the guest. This information can then be used to segment lists and write copy for each specific segment. #5 STAAH Channel Manager The STAAH Channel Manager handles online distribution so you can manage them easily from one place. When a customer books a room from one website, availability is automatically updated across all other channels including your property’s booking engine. STAAH also has an integrated suite of software, including a reputation manager, booking engine, website, and gift voucher manager, which can be a convenient one-stop-shop for marketing a small property. Benefits of the integration: Single log-in to make instant updates and manage multiple OTAs, as well as analytics to determine rates, stop-sell limits and evaluate the success of sales channels. Direct connection to PMS minimizes manual errors that lead to overbooking and double-booking. Top Marketplace Apps for Mid-Sized Hotels Medium-sized properties may sometimes feel stuck in the middle: too large for solutions geared towards independents and yet too small for enterprise-level systems built to manage major operations. Many medium-size properties have F&B operations, sizable staff, and established revenue management procedures -- all of which require solutions with adequate functionality. Except without the enterprise-grade price tag! Medium sized properties generally have larger teams, a marketing department and dedicated resources for functions like revenue management. Here are a few solutions that help medium-sized properties increase productivity and grow their business through better revenue management. #6 SiteMinder Channel Manager SiteMinder’s channel manager provides the benefits of channel management to hotels with more complex online distribution needs. With granular controls over inventory allocations to individual channels, SiteMinder supports a sophisticated revenue management strategy. For medium-sized hotels that welcome guests from all over, the hotel’s base currency automatically gets converted to the currency of a particular transaction -- helpful for providing a consistent experience for guests. Benefits of the integration: The direct integration into Hotelogix eliminates any chance of overbooking or double booking, and also prevents errors arising from manual consolidation of booking data. #7 Beonprice Revenue Management The Beonprice revenue manager maximizes profitability by optimizing rates for every room sold through an intuitive and easy-to-use interface. The tool starts with a hotel’s historical booking data and then recommends pricing based on using local and national events, e-reputation, transportation price, weather forecasts and exchange rates. By automating rate setting using artificial intelligence and all the available data, medium-sized hotels can devote more time to optimizing other areas of the business. Benefits of the integration: Rates are published in real-time, using the latest data from the property management system. With this real-time, scalable, automated and flexible execution of rate publishing, hotels can more fully manage revenues and unlock the value of existing data within a PMS. #8 Repup Review Management Repup reputation management helps hoteliers make sense of online reviews by aggregating all reviews into a single dashboard. Using a combination of natural language processing, data mining, and business logic, the tool evaluates performance so hotels can win more business, increase revenues and build customer loyalty. For mid-sized hotels with lots of moving parts, management won’t have a direct line of sight into everything; Repup can surface issues and identify problems before they magnify. Benefits of the integration: Hoteliers can access complete review data within Hotelogix front desk. The centralized dashboard showcases 60 days of reviews and social media mentions from over 15 online channels, such as Expedia, Booking.com, and Facebook. There’s also an option to configure Guest Feedback Form which can be shared with guests right from the dashboard. #9 Xero Accounting Xero’s accounting software has become a popular choice for hotels with more complex accounting needs, such as multi-currency accounting, payroll, inventory management, and customized recurring online invoices for regular suppliers. For managers on-the-go, there’s a mobile app that mirrors many of the core management features of the web version. The platform is flexible: a robust set of integrations that medium-sized hotels plenty of control to customize workflows and sync Xero with POS, hotel CRM and other tools. Benefits of the integration: Room revenue, as well as corresponding taxes, commissions, and other charges are first recorded in Hotelogix and then automatically synced with Xero -- no more manual imports from the PMS to accounting software! Also, only fully settled folios get synced with Xero, which avoids a lot of headache around cancellations and unsettled folios. Top Marketplace Apps for Hotel Groups & Large Hotels Larger properties and hotel groups employ more people and serve more guests across more complex operations. They need enterprise-level systems that can adequately manage all of these moving parts. The sheer number of options leads to a complex evaluation process. Any new tech tool must integrate seamlessly and work well with everything else in a hotel’s tech stack. There are many interdependencies that make a challenging road for implementation. Not to mention the fact that a larger operation has more stakeholders, such as security and IT, that must approve any new vendor. Depending on the group, and the tech being implemented, on-boarding new tools can take months -- or more than a year for more mission-critical systems that require careful testing. So ease of integration is paramount for larger properties and hotel groups. Here are a few solutions that help larger properties and hotel groups manage complexity at scale and leverage all available data to build a healthy business over the long-term. #10 OneLoyalty OneLoyalty is a Loyalty Management Software that allows hotels without access to a larger loyalty offering to provide best-in-class loyalty programs to their guests. The independent hotel loyalty program also extends to employees and vendors, as OneLoyalty offers tools to engage across stakeholders to foster more loyalty. With OneLoyalty, hotels can offer rewards, coupons or other perks to their guests. A companion mobile app can ping guests with unique offers and alert guests to upcoming promotions. Benefits of the integration: With direct integration, hotels can more easily use the sales tool to attract more customers and increase the share of wallet. Customer profiles benefit from the direct integration, which makes for simpler segregation of customers to personalize offers and thus deepen re;relationships with past guests. #11 Snapshot Business Intelligence Snapshot business intelligence tool positions itself as “hospitality’s data platform.” The comprehensive data analysis platform is the backbone of a hotel group’s data practice. Since Snapshot thrives with larger pools of data, the solution is ideally suited for larger properties and multi-property groups. The Snapshot sweet spot is facilitating access across disparate systems and data sources. Hotels benefit from enterprise-grade custom visualizations that surface insights derived from this comprehensive view into a hotel’s business. Benefits of the integration: Hotelogix sends all past and future bookings and transactions to SnapShot for accurate hotel data analytics. Your dashboard is updated after every night audit, as Hotelogix sends an incremental report to SnapShot automatically. In addition, Hotelogix helps track reviews and social follower trends from SnapShot thanks to connectivity to social media and TripAdvisor. #12 Comtrol In-Room Devices Comtrol in-room devices have been providing networking and data communications for over 30 years. The stability of the company makes it a preferable partner for many larger operations that prize longevity -- after all, it’s important to know that a mission-critical vendor for communications, IT, and networking will be in business when you need them most. Comtrol gear ensures that the PMS maintains consistent contact and data transmission to accurately manage guest accounts. Benefits of the integration: With a direct connection into the PMS, Comtrol can ensure adequate functionality across in-room devices. For such an important part of the guest experience, such as room locks and keycards, this functionality must work without fail. In addition, there are potential benefits for enhanced customizations, such as personalizing the in-room entertainment with guest greetings and other guest-specific information. #13 Vertical Booking CRS The Vertical Booking CRS integrates with over 200 channels, which gives larger hotels more granular control over inventory distribution and allocation. The company also provides on-going training, which is especially beneficial to large operations that will naturally experience higher turnover. The CRS can be set-up to suit hotel groups and chains by defining which functions are managed centrally and which are managed independently for each property. In addition, chains can view performance at the chain level and property level, with staff assigned roles that offer access to the system according to individual roles. The graphic below maps the workflow for chains and groups. Benefits of the integration: A tight integration between the property management system and the central reservation system reduces errors and keeps the team focused on maximizing guest satisfaction. All reservations, whether made through the hotel's website or other channels, are instantly updated in the PMS. An added benefit for larger chains is that Vertical Booking’s CRS can integrate with multiple PMS, so if a new property has Hotelogix, it can be quickly integrated into the workflow.
When enterprise companies spend loads of money on technology they usually think about building tech in house so they can have more control over development and ultimately save money. Sometimes this equation favors building tech in house and other times it does not. Several high profile failures in the hotel industry include a collaboration amongst all major hotel groups to create an online booking platform called Room Key which was eventually shuttered. We’ll discuss this initiatives and more in detail below. Most sophisticated enterprise companies (think Nike and McDonalds) understand that they are not tech companies so they effectively outsource their tech R&D spend to 3rd parties that are focused on innovation. Could McDonalds build software to help franchisees manage their listings? Yes, but they partner with Yext. Nike could definitely build prototyping software in house for its digital products, but it chooses to partner with InVision. Firms like Nike and McDonalds have become innovators by being experts at identifying trends and partnering with top tech companies to meet their core business goals. So the question is, if McDonalds and Nike outsource their respective technology needs - should hospitality companies really be building tech in house? We believe that when hotel brands try to build tech in house it ultimately brings them into precarious waters, here's why: 1. They lack the resources to compete with pure play technology companies 2. Hotel brands usually underestimate the ongoing effort required to maintain and scale a technology business (let alone multiple business lines and products) Hospitality companies don't have the resources to compete with tech companies. Charles Schwab is a massive financial institution worth more than $60B. The firm could easily build custom marketing automation solutions for the business but they choose to work with with Marketo because they know that Marketo will be able to innovate over the long run. Even Citrix and Microsoft, technology companies themselves, use Marketo’s marketing technology so that they can focus on their core businesses. IDeaS, a popular revenue management software company and it’s parent company SAS just announced a 3-year plan to invest $1B in artificial intelligence. SAS is a company that deeply understands the power of focus and investing in its core competencies. "If I want to host a SaaS application, I choose a cloud host. If I want to manufacture a consumer product, I partner with a company like Foxconn. If I need delivery for my restaurant I work with a delivery company. Yet, brands without a technology focus still believe it will be cheaper and more effective to build their own software internally when history has shown us, time after time, that these projects will be over budget, unsustainable, and competitively weaker than the professional tech products in the market." ~Adam Harris, CEO, Cloudbeds The median publicly traded software company spends 23% of revenue on R&D with many high growth firms spending 50% of revenue. It’s hard to imagine that even Marriott could afford the spend levels to develop one competitive product let alone multiple product lines that compete with a myriad of different specialist software businesses. Technology is not a static good. Sophisticated enterprise companies buy into the future of a tech product as much as the present. Technology requires immense amounts of capital to scale and increasing investments to remain competitive. Technology requires even more upkeep than hotels. Where hotels build up their capital reserves and renovate roughly every 5-7 years, tech companies are constantly “renovating” their products daily through product sprints. When enterprise companies “buy” tech they are partnering with tech companies for the future as much as selecting products for the present. The reason that the SaaS business model (recurring subscriptions) aligns value so well between buyers and sellers is because the product is constantly being reinvented so it forces tech companies to maintain their end of the bargain. When you sign up for SaaS (software as a service) you are not only signing up for the product today but you’re buying into its roadmap for the future. Hotel companies that try to build tech in house are rarely prepared for the constant investment required to maintain let alone scale products and keep up with the ongoing massive investment, iteration and innovation of tech firms. So what does history tell us about hotel companies who have miscalibrated this decision? Starwood was bought by Marriott for $13B and itself has taken huge losses on technology investments when they were no longer able to invest enough to remain competitive. According to Starwood’s (now Marriott) 2015 10K filing, the firm took a $6M charge for “technology related costs and expenses that were no longer deemed recoverable.” Go back further to Starwood’s 2013 annual filing for stockholders and you’ll find a $19M charge related to “technology related expenses” that the firm “decided to absorb” because they couldn’t collect from managed and franchise properties. When we draw the analogy between maintaining software and maintaining a hotel, Starwood was effectively unable to properly renovate its technology and investors paid for it. Every hotelier knows what happens when you let a property go too long without renovation and the same happens when software isn’t maintained properly. Similar to Starwood building tech in house and having trouble maintaining the infrastructure, Choice created Skytouch PMS internally with the vision of transforming the tech market and has similarly struggled. “In 2014, it [Skytouch] generated a net loss to the company of up to $20 million. Investors have pressured Choice to either make SkyTouch profitable, sell it, or close it down.” Choice stopped reporting the results of its Skytouch division and now includes those results within its “Corporate & Other” expense line (pg. 102 of Choice 2018 10K filing). So while Choice no longer gives updates on how Skytouch is doing - it is highly inprobable that a company like Choice would decide to include the a business unit as an expense line if that unit was doing well. In addition to the Skytouch debacle, we've also heard that Choice is winding down its Choice Labs innovation division. Accor, too, recently reported a $288M write-off on tech investments such as AirBnB competitor Onefinestay and concierge service John Paul. Accor even tried to sell it’s distribution to independents and shuttered the project after 2 years, here’s what happened in the words of Accor’s own spokesperson. “This initiative is no longer relevant in regards to the Group’s strategy and its new profile as per today. Results are below expectations” Accor wanted to plug independents into its massive distribution which in theory could add a ton of value if executed well and even that didn’t work. Even when all the big hotel groups banded together to build the online booking platform Room Key they failed (Choice, Hilton, Hyatt, InterContinental, Marriott, Wyndham) - isn’t it time that hotel companies learned this lesson? Even Booking.com had to shut down it’s hotel software operations after some high profile acquisitions - a testament to how tough the business really is. Conclusion: Hotel brands shouldn’t build tech - they should get better at buying it The lesson here is clear - hotel brands need to focus on what they do best. They should leverage their scale and clout to secure great service and attention from tech partners. It’s up to franchisees and investors to ensure that operators stay focused. Hotel brands have insanely complex businesses managing many stakeholders who often have conflicting interests. The business of running a hotel is a huge feat both operationally and from a revenue/distribution perspective. "Because the skepticism exists and because tech can take long, hoteliers reach the wrong conclusion. They decide to build instead of buy. I have witnessed a transformation in travel tech. Increasingly, hotels are embracing the rules of comparative advantage and are embracing tech where they can move fast, learn fast and benefit quickly." ~Alexandra Zubko (former IHG Lead Strategist) Because of these factors, hotel companies who want to succeed in the digital age should be experts at technology procurement and management. Historically hotel brands have been very weak when it comes to technology procurement and management so many have tried to compensate for that weakness by building tech products in house. Unfortunately this strategy often leads to write-offs, burning piles of cash and consequently the executives who lead these disastrous projects being pushed out. "Great technology products enable a valuable job to be done to be easily performed with maximum success and consistent results. With the blistering pace at which the world is changing, our expectations change. That means jobs to be done change. And that means software needs to rapidly iterate and evolve. That is why the world is headed to simple, modular solutions that can nail jobs to be done as they evolve. The smartest brands know that to create compelling and lasting technology advantage, it’s now about identifying and bringing best-in-class interoperable solutions together into powerful system that gives lasting advantage. From a cost, resource, time to market and life time value perspective, you’ll waste literally millions of dollars even before calculating the opportunity cost. Brands need to get amazing at hand-picking and investing in their strategic technology partners who are proven to design, build and iterate the purpose-built software hotels require, so they can then focus on delighting guests, growing locations and enhancing the value of their networks for franchisees." ~Marc Heyneker, CEO @ Revinate Large enterprise brands have some clear motivations: (1) They want to expand to more and more hotels worldwide, and be able to do so quickly and efficiently. That means needing a consistent stack of solid technology that can be deployed, enabled and operationalized to run and add those hotels to the overall system. (2) They want to proudly position their Technology Stacks and enabled programs as unique value-adds that differentiate their Brand and their Brand value. So they can both convince Owners why they’re better, and monetize and justify their Brand fees in an age where consumer preference for brands is in decline. This sometimes gives large enterprises the false sense of belief that they need to build their own. In fact, building your own puts both goals in jeopardy, almost immediately. These multi-million dollar, multi-year, multi-faceted technology projects become sinkholes for capital investment, anchors to business progress and optimization, and turn into tough write-downs as we saw in the examples above. Hotel brands should instead be focused on rethinking their technology organizations to be better buyers and managers. Corporate hotel purchasing units have historically focused on price negotiations and software customization (i.e. product roadmap hijacking) but in order for brands to thrive in today’s hyper competitive markets they are in need of a massive strategy shift. Red Lion Hotels Corporation is one such company that has taken a deep look at how it buys technology and optimizes its tech stack. Red Lion Hotels Corporation CIO John Edwards shared his firm's approach to technology vendor selection with Hotel Tech Report. "At RLHC, we have been able to establish ourselves as leaders in hospitality innovation by focusing on what we do best: finding the right technology partners to create solutions that meet our hotel’s needs. We believe that is the fastest way to change the technical landscape in our industry. RLabs and Canvas Integrated Systems were created to house our already existing technology and innovation solutions, which provide customized best-in-class solutions for our hotels. Our tech stack includes well known industry solutions such as IDeaS, Opera, & WindSurfer as well as new industry solutions such as Monscierge and HAPI." Digitally savvy hotel owners want technological choice and they want the procurement benefits that brands command with scale. The brand development teams that win in the digital age will be the ones who are able to deliver choice to owners around which technology vendors to use, the scale that comes with warehousing and leveraging data from that warehouse and the cost benefits that come from bundled negotiations with vendors. Recommendations to hotel brands who want tech to be a core differentiator 1. Map out clear technology systems required to deliver on core business goals and all potential providers 2. Lay foundational infrastructure for open systems and clean data Design scalable processes to constantly beta test competitive products in the market and identify new products that can drive core business goals. 3. Set aside designated resources for technology management. Hotel groups should maintain a vendor CRM and dedicated staff for managing vendor relationships. This staff should also be tasked with collecting market insights and sharing new technological developments as well as vendor status updates on a regular basis with leadership. 4. Set clear and tangible KPIs with each vendor that must be met in order to retain the contract (e.g. customer support response time) Create clear roadmaps for switching systems in the event that suppliers do not deliver on KPIs 5. Invest in tech startups that fit your strategic criteria above! Highgate (invested in Stay Wanderful, Travel Tripper, LodgIQ, OTA Insight) and CitizenM (invested in Snapshot, exited to Shiji) have been incredibly successful executing on this strategy. They put strategic money to work then derisk their investments by giving those startups proof of concept in their properties. 6. For hotel companies that don't have the resources to start a fund internally like them there are great strategic venture capital firms that are focused on real estate and can do the heavy lifting for you - check out Metaprop VC and Fifth Wall Ventures. Investing enables you to gain access to innovation and lend your expertise without snuffing out the creativity. Leadership is about investing in great people and trusting them to do the work, not about micromanaging every aspect of the process yourself.
Dave Berkus knows hospitality technology more than nearly anyone. Back in the early 1980s, his company, Computerized Lodging Systems, dominated the nascent hospitality technology market with one of the first electronic Property Management Systems on the market. The immediate popularity of the technology resulted in rapid growth for the company, which was recognized on the Inc 500 list -- twice. Dave also created FOSSE, the property management system technology that Marriott used for almost 36 years. Today, there are over 700 property management systems for hotels. With such a dense thicket of choices, it's hard to imagine the early days of hospitality technology. These are the days when only a few players dominated, offering truly game-changing solutions that defined how hotels began using technology to operate more efficiently and profitably. Dave is also an accomplished angel investor, having achieved an impressive 97% internal rate of return from over 150 investments to date. His Wayfare Ventures unites five partners from AIG, TAJ Hotel Group and Starwood, alongside a board of accomplished travel industry veterans, to make early stage investments in travel technology startups. Hotel Tech Report’s Jordan Hollander recently enjoyed a wide-ranging conversation with Dave on the Hotel Tech Insider podcast, where the two discussed how Dave’s history in hospitality technology has shaped the way he sees the industry today. These are the most pertinent themes that reveal how this hospitality technology luminary sees the future of hotel tech, as well as what he looks for when evaluating both ideas and entrepreneurs for investment. The future of the PMS With so many property management solutions competing for business, it's hard to envision a post-PMS future. Yet, this future is coming, Berkus says, due to the increased importance of the Central Reservation System. The CRS owns the guest name record, which has made it more of a centralized source of data than the PMS: The PMS systems are, for the chains at least, becoming increasingly less important, as they handle right now in-house functions only. Berkus notes that the cloud PMS companies of today are likely to be the players who evolve these CRS like capabilities so while he believes that their technology will remain a core piece of the tech stack, he believes that what it means to be a PMS will change more in the next 5-10 years than in the last 20 years combined. Guest history has shifted to the CRS, while the PMS has transitioned into a fully operational role for specific properties. As hotels have both consolidated and established micro-brands, the CRS naturally became the way to share guest preferences across the portfolio. The centralization of data cemented the role of the CRS at the center of modern data-driven personalization and marketing strategies. says Berkus: Big Data's being used in very important ways but certainly not just from the PMS system anymore. The question then is: if the CRS could potentially supplant the PMS as the source of all-important guest data, will we need a PMS system in the future? Berkus says yes but the legacy PMS companies will be forced to innovate and more specifically open up their architecture to become platforms themselves because CRS, CRM and even Revenue Management companies of today have the requisite data necessary to become the center of the tech stack according to Berkus. Eventually, Berkus sees most hotels relying on a single cloud-based system that aggregates all functionality into one flow, which reduces errors and increases accuracy as it doesn't require passing information around multiple systems. A hybrid PMS/CRS/CRM solution means a single guest record that enables better, more accurate personalization. The consolidation of functionality also simplifies the tech stack and should help hotels effectively use existing data to power personalization at the individual guest level. A unified tech stack unleashes the full power of data-driven decision making, which will soon be table stakes for how hotels everywhere compete. Rather than relying on incomplete sets of data, hoteliers can constantly make decisions based on the holistic view. A unified tech stack can also be achieved through seamless integrations and Berkus says that “there will always be best of breed solutions in various categories.” This vision will take a while to achieve, and so the PMS will continue to play a critical role for hotel operations: If we look ahead ten years, it would be easy to see a single cloud-based system integrating everything from CRM to reservations to the accounting functions at the properties, all the way through all forms of marketing and follow-through. Even with this view, Berkus sees the potential for category leaders to dominate specific verticals, while still providing the essential services necessary to run a hotel. For example, revenue management, which may be a feature of a CRS or a standalone solution -- all depending on how an individual property derives its revenue, and the sophistication of its revenue generation strategies. Part of the problem, he says, is that people confuse hotel tech with quality hotel tech: just because a hotel has a system doesn't mean that it is a good system. For Berkus, this means that the hospitality technology industry has plenty of dynamism ahead of it and he believes that it’s far from maturity. The transformative power of analytics For Berkus, the primary reason for the PMS’ uncertain future is due to its isolation from data and analytics. Even the most integrated systems have challenges when it comes to gathering data from disparate sources into a unified view. Even so, it’s the analytics on top of all of this data that drives profitable hospitality today. Whichever technology hotel uses, It must facilitate the types of analysis that drive “more capable decisions,” across the organization, says Berkus: Analytics are everything. The most important single change that's going to come is the fact that every piece of data that arrives at the central source will be analyzed. You're going to find that more capable decisions will be made to maximize revenue...based upon AI and data analytics. That's your future. The unsaid implications here is that hotels with a sub-par data and analytics approach will be left behind. Hospitality has become not just about the guest-facing product but also the hidden back-end of intelligent data capture and analysis. The top performers will effectively oscillate between analyzing the data and making clear improvements based on this analysis. The data-driven hotel GM As data and analytics move to the core of a hotel’s operation, general managers must evolve their skill sets to match. While operations will never cease to be a part of a hotel general managers role, success in this role is increasingly about the ability to enhance profitability by effectively translating data analytics into actionable initiatives. Currently, GMs have a steep learning curve to build muscle memory around analyzing large amounts of data from disparate sources. As machines become more capable of doing the analysis on their own, the best GMs will be able to take action on the analysis presented by the tools to increase profitability, Berkus predicts: A manager has to be able to add value by adding revenue and by increasing guest satisfaction. Those two things are not necessarily the operational things that a manager today normally concentrates on. Marketing also matters more to the GM of the future. As marketing campaigns become data-focused, GMs will engage more deeply with their marketing teams to leverage a data-driven approach to spend marketing dollars more efficiently. It's all about the relevant message consumed in the right context, as GMs seek to add value in new ways. Sourcing true pain points from sales and marketing Berkus is an active angel investor, and his recent announcement of Wayfare Ventures brings his focus to travel technology. When it comes to developing an idea, Berkus sees real value in entrepreneurs solving true pain points rather than perceived problems: I love it when somebody in marketing or sales develops a company and says “I feel the pain” and let's try and solve the need. As opposed to what I see most often, which is an engineer says I really got an idea and I'm going to make that idea work. The contrarian view is noteworthy in its opposition to the engineer-focused view espoused by many investors and technologists. Part of this view comes from the plummeting costs of cloud computing, as well as the prevalence of APIs which make it simpler to plug into an existing ecosystem without having to build as much technical infrastructure. Differentiation comes less from tech and more from truly knowing the problem and having clarity around what needs to be solved -- rather than building a technically-flawless solution that misses the mark and fails to gain traction because it doesn't solve an actual problem. An early-stage solution that solves a real problem for a specific segment sells itself and helps a startup gain traction at a lower cost. It’s expensive to convince people that a product solves a non-existent problem. Market trends poised for investment As far as trends in the market that have potential, Berkus points to artificial intelligence, robotics, and data analytics as three disruptive forces. However, things change fast. Apps are no longer the hot commodity they once were. Today’s opportunities are all about AI, robots, and data analytics. When evaluating the most exciting opportunities for investment, Berkus expands his view to encompass all of travel technology. This expanded view allows him to see opportunities from the interconnectedness of the travel and hospitality industries, which is a core part of the thesis at Wayfare Ventures. It all comes down to using modern technology to find new revenue that may not have been easy to uncover in the past. Whatever it be, there are opportunities now for revenue that weren't easily available in the past but are today. But the whole point is if guest satisfaction goes up and guests are able to do things they couldn't do before, like order a meal from text, then you're going to have better revenue and more satisfaction. Enjoy the full podcast episode here. Outside of the points covered above, Berkus shares the fascinating foundational story of the first property and yield management tools for hotels.
One of the biggest misconceptions that hotel workers believe is that technology and artificial intelligence will take their job. Here’s a news flash - it won’t. Don’t believe us? Just take a look at history. From early Mesopotamia to 17th century Europe economic growth grew at a steady pace. Blacksmiths forged iron, tailors made clothes and so on. At the dawn of the industrial revolution many predicted that factories would displace this workforce and create mass unemployment. In fact, the opposite happened and factories created an entirely new economy with explosive employment and economic growth. What we see time and time again is that game changing innovation creates growth that in turn delivers net positive jobs. Hoteliers who want to succeed in the future are advised not to focus on the jobs that technology will displace but on the jobs that it will create. The same misconception from the Industrial Revolution resurfaced in the late 70s with the advent of spreadsheets. Analysts thought that they would lose their jobs to intelligent computing programs but found that technology actually empowered them. The top analysts of the 70s were those who were best at doing advanced calculations off hand while the top analysts of the 80s were the ones who knew how to effectively manipulate, visualize and analyze data in spreadsheets (check out this awesome history of spreadsheets). For the hotel industry it’s inevitable that automation and A.I. have been driving a more profitable business model. The trend is also leading to a new breed of top hoteliers with a different kind of skill set. In our interview with FOSSE creator Dave Berkus, he told us that the hotel general manager of the future is going to require less operational knowhow and more analytical chops. Hoteliers believe that revenue managers will lose their jobs when artificial intelligence gets good enough. I believe that artificial intelligence is going to make revenue management an even more valuable skill because it will take more insight and analytical rigor to stand out from the competition set in a data-driven world. ~Aditya Sanghi At the core of this change is the property management system and few have changed the game for the PMS market like Hotelogix founder and CEO Aditya Sanghi. Aditya has launched a wildly successful business in some of the toughest markets like Asia and Southeast Asia (due to language and culture differences). The product he and his team have built is so strong that it transcends these cross border discrepancies and is widely used by hoteliers around the world. Hotelogix is becoming increasingly popular in markets like Europe and the United States - a testament to the incredible company that Sanghi has built. During this interview we learn from Aditya’s unique perspective on life, hotels and business. We also talk about the future of hotel property management systems and what qualities hotel managers must focus on developing in order to succeed in the A.I. revolution. What was your background prior to starting Hotelogix? Hotelogix was founded by Prabhash Bhatnagar in 2008. Before Hotelogix, Prabhash used to offer web solutions’ services, where he interacted closely with many hotels. That’s where the idea of offering a cloud-based PMS to the mid-segment hotels germinated. I joined Prabhash as a Co-founder, as I was always interested in making a product for the global market, and Cloud PMS gave me a perfect opportunity to do so. Before that, straight out of college, I had co-founded another product-based company, EDISPHERE with my brother Ajay Sanghi. I believe that my early exposure to creating products played a great role in shaping my entrepreneurial journey. What made you decide to jump in and create Hotelogix? I had a burning desire to create a product that had global reach and appeal. India was not known as a hub for products back then and I always believed that products would drive the next phase of economy for the country. I started my corporate life as an entrepreneur. I am known to be a ‘happy-go-lucky’ kind of person and have never feared consequences. I think a major factor in becoming an entrepreneur is to not have a fear of failure. I come from a strong sports background, where winning and losing was part of the game. I believe that losing a battle is an integral part of winning the war, and one must enjoy the whole journey. I think I was better prepared to live the life of an entrepreneur because of my learnings from sports and my family background where ‘risk taking’ is normal. There is also a certain sense of joy and contentment in creating footprints for someone to follow. Any footprints that Hotelogix can create for other companies to follow will be a huge accomplishment for me. Changing the life of a customer is another factor that drives me. And, co-founding Hotelogix gave me a perfect opportunity to do that. I realized that the industry would soon transition to cloud PMS as the entire travel world was poised to go digital, and I took the opportunity to drive this change. On how it started… Prabhash had shared his idea in a ‘New Year Party’ in December 2007 while we were sipping whisky by the fireplace, on a chilly winter night. I think my decision was taken in a couple of hours of our conversation. All the above factors were too compelling for me to continue working in Informatica Business Solutions in Bangalore, where I last worked. I have taken some of the most critical decisions of my life in less than a couple of hours. And, I do not regret any of them. Who was your first customer at Hotelogix? Our first customer was in 2009, a small boutique hotel called Faros Suites from Lonian Islands, Greece. Convinced by our ‘try and buy’ model, they took a free trial of our PMS. Back then, we did not have any sales team and the founding team would respond to chat and email queries. After a few days of self-running trial with assistance on chat and email for concerns and clarifications, Angelo, the owner decided to go ahead with Hotelogix. Their decision to implement Hotelogix did not involve any huge financial investment, but it did involve their time and resource investment. They were moving from pen & paper to adopting our cloud solution. Such a transition is never easy. Wow, so your first customer signed up through a trial, is that something that Hotelogix makes widely available for hotels? Look to any industry and software buyers can try different solutions before they buy. We believe that is the future for hotels too and have made trials available to any hotelier who wants to take our software for a spin. Great hotel business starts with a powerful Cloud PMS and hoteliers should be able to see the product in action before they sign on. This is why hotels in more than 100+ countries trust Hotelogix Cloud PMS. Hotelogix is a smart solution that helps our clients stay organised and connected. If you want to simplify your operations, get more business and keep your guests happier - don't take our word for it - try Hotelogix free. The Hotelogix dashboard is intuitive and easy to learn for new staff Who is one mentor that has really helped you scale the business? That would be Shekhar Kirani, from Accel Partners (our investors). He is also on our board for quite a few years now. Shekhar has taught us that it is ok to make mistakes, fail and move on fast. The day and age is not suited for over analysing things to take decisions. He also taught us to how to think like a funded company, and the switch that needs to be made from the ‘boot strapped’ mind-set. Here are a few more things that we have learned from him – On hiring – If you need one sales person, hire three. Choose the best person for the job without losing time. If more than one of them turn out to be good, it is never considered as a bad investment. On our website that is expected to generate demand – The first fold of your home page is for humans, and rest is for Google. Look at your website from that perspective. Don’t overly spend time trying to beautify what pleases the human eye but has no bearing on Google. On any process, like mailers to be sent once a form fill is done on the website - Just copy the follow up mails from some service that is successful and don’t waste time recreating it. On focus: Shekhar has also worked closely with us to bring in lot of focus in the way we think of the road ahead. This helps us choose the next two battles to win, rather than going all out and not winning anything. Hotelogix team building exercise What's one commonly held belief that most hoteliers believe to be true in your niche that actually is false? For example: Hoteliers believe that revenue managers will lose their jobs when artificial intelligence gets good enough. I believe that artificial intelligence is going to make revenue management an even more valuable skill because it will take more insight and analytical rigor to stand out from the competition set in a data-driven world. Hoteliers are used to looking at PMS as a cost centre of the hotel. With the maturity of Cloud PMS, the paradigm has changed. A PMS should not be considered as cost, but as a system that will help them grow revenues and business. Also, for most hoteliers, deciding on PMS is an operational decision whereas I feel it should be more of a strategic decision. What's the most surprising thing you've learned about scaling technology into hotels? The most important thing that I have learned is the difference between products for a vertical vs. horizontal industry. When you are looking at a vertical industry like hospitality, you can’t ensure a frictionless scale-up unless you understand the behaviour of even the housekeeping staff. It requires going deeper into the domain and environment. Another great learning is to choose the battles to fight. ‘Is this the right time to solve this problem?’ is one question to be answered. Gut feeling is important but scaling up needs data backing. Instinct should get things on the table for consideration, but one needs to get to data points to decide on it. Thirdly, support is the most critical aspect of serving a hotel. Even if the product is not evolving and innovating as quickly, one must spend disproportionate time trying to understand how you can be more effective in your support. Is there a company that has been a particularly good partner for you? Yes. We have been partnering with several third-party solution providers to help hotels leverage the power of cloud technology. Some of them have been quite important to us. They are - Vertical Booking Channel Manager - The integration we did with Vertical Booking was first-of-its-kind back then. It was a complete two-way integration to support very critical aspects of OTA distribution like contract allotment vs free sale. Vertical Booking also stood alongside as a robust solution and the integrated offering is still what our customers enjoy. This was the first channel manager integration with Hotelogix and our customers saw instant benefits in terms of nullifying double bookings, getting more OTA bookings, increasing revenue and many more. TripAdvisor Review Express - Review Collection automation, and ability to influence reputation from Hotelogix PMS was the perfect thing to happen. Hotelogix was mainly a solution positioned for independent hotels and we have always believed that reviews are a great leveller between independent hotels and brands. Our customers saw how Hotelogix and Review Express integration seamlessly improved their TripAdvisor ratings, that benefitted them in terms of better ARR and more bookings. Where do you see Hotelogix in 5 years? 5 years from now, I imagine Hotelogix to be a word that is synonymous with Cloud PMS. Hotelogix will be more like an Operating System for hotels, providing various services on top of its PMS platform. We will be a product that is associated with simplicity that drives great customer value. We will be known as a catalyst to this change of bringing about automation to the mid and small sized hotels, and driving the change from on-premise to cloud-based systems for running operations. More objectively, Hotelogix will be the largest Cloud PMS in the South Asia and Southeast Asia markets and will be in the top 3 leading products in developed geographies like the North American market. How will the property management system and overall hotel management software space change in the next 5-10 years? Today, Hotelogix is mainly serving semi-service and limited-service independent and group properties like Hotels, Resorts, Apart Hotels, B&Bs, Hostels and more. You will see specialized product offerings for these different property types. You will also see Hotelogix becoming a key player in anything that needs booking of a room/desk like corporate housing and co-working spaces. Hotelogix as a brand will become a ‘Gold Standard’ in the industry and will be adopted by hotel management institutes to train their students on PMS. Hotelogix will be that self-serving platform that a hotel business can get up and running within no time – where he can quickly subscribe, adopt and benefit from the solution. This means a lot more smaller hotels will be able to avail of our solution without having to go through adoption challenges that come with a new PMS. Hotelogix is highly passionate about small to mid-sized hotel businesses. For a very long time, this segment didn’t have access to great technology as service providers across the globe concentrated on the five starred community, like Opera and Travelclick. Things are changing now. Tech providers are focusing on this segment as adoption of technology lagged in this sector. The popularity of this segment has also been purely driven by market dynamics, where travelers are now choosing to stay in independents and smaller properties. So, it’s time to focus on enhancing the guest experience for such properties. The community should look at creating more services/products that are geared towards the guest. Treating them like 5-star guests by leveraging AI driven technology can be used to serve and monetize better. What are some of Hotelogix's recent product innovations that hoteliers should be aware of? Hotelogix has released its Developer platform. Using this, third parties can develop apps on Hotelogix. Our firm belief is that hotel brands will become more like consumer tech businesses (like Amazon), and each one of them would have technology at the forefront to drive their brand strategy. This would mean, giving them the flexibility to develop apps that are not necessarily provided by us or any vendor, but are customised to their needs. We have toyed with this approach and it has been adopted by a couple of customers. I think this is the ‘Uber’ effect that ‘PMSs’ can provide to brands. Additionally, we would like to promote our Mobile Developer Platform and see if the industry feels it is of value to them. What advice do you have for hotel tech entrepreneurs? It’s a fantastic industry to be in as long as you can empathize with hotels and their guest experience. Hoteliers and hospitality professionals are a very interesting bunch of people. They have many anecdotes to share as they deal with people from all walks of life. Sometimes, entrepreneurs looking to get into the hotel tech space need to be ready to wait it out, if they believe their product will bring value to hoteliers. Like, in the case of Hotelogix, we were clearly ahead of time when we released our Cloud PMS way back in 2009. But now, the environment is great and cloud PMS has emerged as one of the hottest pieces of hospitality technology. Make technology such that it can be seamlessly adopted. A hotel already deals with so many challenges that adoption of something new can become a bigger challenge. Generally, people in operations are the users of technology and your product needs to fit seamlessly in their lives.
Working as a front desk agent at a hotel is insanely hard work. Hotel guests have extremely high expectations: they want to be checked in fast, they want amazing service, a 24/7 smile and they want to be upgraded to the best room for free. They want you to know everything about them but not too much that it’s creepy. They want friendly conversation but they don’t want you to talk too much. Check-in systems break down, reservations are lost, overbookings happen and so much more can go wrong that is completely out of your control. All that said the buck stops with you as the front desk agent. Rarely will guests ever call your GM to tell them how great you were but they are quick to let your boss know when you’ve messed up in their eyes. So you’re frustrated and stressed behind the front desk - what do you do? If you’re anything like Kevin Brown you’ll find your passion and put in the work to follow your dreams. Today Kevin Brown is a Product Marketing Manager at Amadeus Hospitality, creator of global hotel management software like Delphi Sales & Catering, HotSOS operations software and core GDS solutions for hotels. Most front desk managers and housekeeping managers would think that Kevin’s role today is out of reach. The good news is that your successful career as a technology executive is completely within reach. To get there you’ll need curiosity, outside the box thinking, self guided learning and lots of hard work while your colleagues are going out for drinks after their respective shifts. Here at Hotel Tech Report we’ve recently documented similar career rises like how Matt Welle parlayed his role as a Hilton sales rep into becoming CEO at Mews Systems, one of the hottest technology startups in the hotel software space and creator of a leading property management system for hotels. “What I wish I understood far earlier in my hotel career is that the hotel and travel industry actually set the standards of service for every other industry out there. The skills you develop in hotels DO translate, and frankly what you learn about service in the hotel industry is cutting edge.” ~Kevin Brown Kevin began his career in hotels at the Cosmopolitan Las Vegas, a property known for its sophisticated technology integrations and infrastructure. While at the Cosmo, Kevin took every opportunity possible to learn about the technology under the hood of the hotel. His unquenchable thirst for knowledge led him into learning the intricacies of every system in the hotel and developing a clear understanding of what was working as well as what wasn’t. Kevin took advantage of his role at the hotel to build relationships with technology companies, he became a power user of their products and they began learning from him as much as he was learning from them. When Kevin first met the Customer Experience Manager at Amadeus Hospitality he knew that’s where he wanted to be. Kevin’s story is an incredible journey that demonstrates how you can leverage your role behind the front desk into a successful technology career so we interviewed him to learn tricks and tips for hoteliers who are thinking about a career in technology down the line. Remember to build close relationships with your existing technology vendors, try lots of different technology products and never stop learning. Can you tell us about your career background in hotels? My career in hotels is quite odd since I only worked in one hotel before I became a part of the tech industry. I originally came from the marketing and production world of the music industry. It was by happenstance stumbled upon an opportunity at The Cosmopolitan of Las Vegas. During my time there I was able to hold almost every major departmental role in the hotel division; both traveler facing and back of house areas. What I enjoyed most about working in hospitality was the blending of so many cultures and nationalities and how much I could learn from people. The only part I dislike about the hotel industry is that it is the most overworked and underappreciated industry. What every hotel industry professional has to go through and deal with on a day to day basis is astounding. To create memorable experiences for travelers is truly nothing short of extraordinary, and yet a majority of the time the only feedback hotel staff get from travelers is negative. Many travelers do not get to peek into how much talent and effort goes into making their stay amazing, and I think hotel staff like room attendants and call center managers deserve recognition for that level of service. What was one technology that you couldn't live without while working at the front desk? I could not live without any tech that automated my work processes and ability to quickly turn data into knowledge. Manual process and effort is the absolute bane of our industry, and with the rapid evolution of traveler and group expectations for personalization and quick response times I do not know what I would’ve done without those empowerment tools. I was lucky enough that I was immediately introduced to technology the moment I stepped foot into the hotel industry, and I feel like I was exposed to cutting edge stuff like chatbots, task automation, and traveler profiling years before hoteliers even knew about it. When the Cosmopolitan opened, the vision of tech integration was a key foundation to the success of the hotel's brand. What would you say is the most widely held misconception that hoteliers have about technology? I think the single biggest misconception is that hoteliers think the solution to their traveler personalization problems is to invest in traveler facing technology and create an omni-channel experience. The biggest problem hoteliers face is actually their staff turnover. What is the point of having traveler facing technology, without experienced staff that have the right technology to empower them to deliver on the brand experience? Your staff must always come first if you want to truly personalize and fulfill your brand promise. This means hoteliers need to balance their traveler facing and staff facing investments more effectively. Tell us about your journey from hotelier into the technology industry. I am 100% a geek and love keeping up with the future of technology. Once I got into hotels, with an immediate exposure to technology, it became a goal of mine to inevitably work with hotel technology. When I was a customer many vendors just wouldn’t listen to the real pain points that my teams had. Many vendors that I was exposed to were just trying to sell their technology without showing me what value they were bringing to solve an actual problem that we had. I developed a strong point of view on what great vendors did and what bad ones did so that I could start adding value and also to help me identify where I’d ultimately want to work. When I met my CEM (Customer Experience Manager) with Amadeus, he and I struck a solid relationship that built over time into a really strong partnership. When my CEM decided to get back into hotel operations, he asked me if I wanted to replace him. Every staff member I met from Amadeus was solely focused on solving problems for their customers. After my interview with my soon to be leaders, and learning that almost every one of my teammates worked in hotels in the past, I knew I had found my new home. The rest is history! What was the most challenging part of moving from hotels into technology? There really was no challenge for me. For me, the adjustment was so surreal to see how greener the side of this world is that suits my passions when compared to the constant, fast-paced nature of hotel operations in Las Vegas. I have to admit, I am lucky beyond measure to let my inner geek out, travel, meet incredibly brilliant people I can learn from, and tell stories that have real meaning for our industry. You obviously loved Amadeus as a customer even before you worked there, what is it that stood out to you about the company? Hospitality is all about the human connection and a property’s ability to deliver positive experiences for guests. Amadeus’ technology solutions provide cloud-native capabilities for the Central Reservations System, Property Management System, Sales & Event Management, Business Intelligence, Media, Guest Management solutions, and Service Optimization. These solutions not only cover the entire life-cycle of a guests’ journey, but offer properties the added benefits of usability, functionality, and visibility into guest data. This represents a game changer for the industry, as venues commonly work with multiple technology vendors and have fragmented views of their guests. Imagine that you're going to open the hotel of your dreams tomorrow. What kind of hotel would it be? My dream hotel to open would be independent, targeted at middle upper to luxury travelers. It would be small with about 75-100 rooms in the heart of Chicago or Las Vegas that catered to music, art, and entertainment with a 40’s-50’s post modern flair. I would also ensure that the property had tactful touches of advanced technology bordering on science fiction levels of experience. I would love to find the right way to bring back the big band era style of hospitality. That post-modern design, and the elegance back then was so timeless. Pairing that timelessness with technology would really be unique in a market so saturated with the same kinds of offerings. I would name it The Indigo. Not only do I enjoy the color, but indigo dye has a really interesting history and it was one of the largest influencers in the globalization of the world. From a technology perspective I would focus on building the hotel with the best infrastructure out there so it was future proof for the next 10 years like fiber lines, BLE, mesh sensors, and building management automation. Otherwise, if I didn’t I would have to keep upgrading every other year or so which is so much more expensive in the long run. I would actually highly limit traveler facing technology, and be tasteful with what channels and tech travelers were exposed to. I would then invest in the best staff facing development tools and technology money could buy to ensure that my staff could work smarter and not harder. I believe staff should always come before the guest, so I would want make every effort to ensure my staff to have every tool they need to easily conduct their day, maintain building integrity, and have knowledge about any traveler they interact with to make the ecosystem engaging and meaningful for both staff and travelers we would host. What's one piece of advice you have for hoteliers who have dreams of working in technology one day? Surprisingly, there are many hospitality tech vendors out there in the world with a majority of staff that have never worked for a hotel a day in their lives. Because of this problem, I think we actually need more hoteliers to move into the tech space than ever before. Thankfully with Amadeus, I am surrounded by decades of hotel experience between my teammates, but almost everyone I work with shared a similar sentiment when they were in hotel operations. Many hoteliers think the moment the work in a hotel, they are sucked into a vacuum of an industry they cannot get out of, and that their skills cannot translate to other industries because travel is so specific. What I wish I understood far earlier in my hotel career is that the hotel and travel industry actually set the standards of service for every other industry out there. The skills you develop in hotels DO translate, and frankly what you learn about service in the hotel industry is cutting edge. It takes years for other industry sectors to adopt hotel industry best practices, so you have more to your advantage than you think. What's one podcast, newsletter or book that you recommend hoteliers read if they'd like to eventually move into tech? Read everything by Malcolm Gladwell. Blink, The Tipping Point, David and Goliath, read all of his stuff. His work opened my mind to new perspectives about how to help others, learn, and gain a greater understanding about what it means to be in service to others. Hospitality is about engaging with people, and dealing with human problems. There is no uniqueness to the problems hoteliers face every day. Travel technology needs as much humanity as possible because travel is all about connecting with a place, with people, and with yourself. What is your favorite hotel in the world? As much as I have thought about this, I honestly cannot pick a favorite hotel in the world. It is just too hard because every great hotel I have stayed at has always offered something different that I enjoy. Each one stands out in its own way. However, I can say this: I think the best hotels in the world are the ones that anticipate my behavior and needs based on what they know about me, especially if they greet me by using my name. What is the most exciting technology you've seen in the hotel tech space that is not built by your own company? Why? Mesh networks and beacon technology. I think that is one of the most impressive future hardware developments not only for hospitality, but for the world. While it is an extremely fine line – where many data collectors have pushed the creepy line to the edge with tech like this – I think that mesh network and beacon technology can truly enhance the lives of travelers and consumers alike. What is one thing that most people don't know about you? I am an identical twin.
When you aim to increase your hotel revenue, you can’t ignore the power of packages. Hotel packages are a tried and tested medium to drive bookings, increase occupancy, upsell non-room items and boost profits. They are an essential part of your hotel rate management, most importantly during the booking process, as they help you persuade potential guests to book with you. Travellers, no matter how you bucket them, love hotel packages and they tend to book with you if you offer them attractive packages. Not convinced? Here- Take a look at these statistics: According to TripAdvisor’s TripBarometer research, 44% of travellers are looking to book hotels with packages. · And moreover, guests who buy packages are less likely to cancel their reservations. · Packages are useful to attract repeat and direct customers. Now, don’t you think that you should try to increase your hotel revenue with packages? Here is how you can go about it – Be time-sensitive You generally do not need to worry about rolling out packages during peak seasons, when demand is on the higher side. But here’s the twist - To make the most of your peak season business and to ensure that your hotel is fully occupied, you can consider offering packages to your guests. For example – you can come up with “Book now to stay for 3 nights and pay for 2” and can mark the same package as “non-refundable”. This way, if the guest checks-in or even cancels the booking, you don’t stand to lose anything. Be creative Every hotel in your region offers packages or special discounts on Christmas Day or Valentine’s Day. You could get lost when promotions galore everywhere. So, why not get little creative? Take for example – Veterans Day. Be quick to create a theme around it, create packages for veterans’ families or even for armed force personnel. Launch a campaign around what you offer in advance and the see the difference. Leverage local events If your hotel is in New Orleans, you would have understood what I am trying to say here. Yes, we are speaking about Mardi Gras. In 2019, this will be on 5th March. Start with a well-designed campaign by early February, send out targeted emails and inform your guests about your offer. Create packages for groups by including passes for some popular joints like Café du Monde and Café Beignet and transportation facility to Jackson Square, etc. Do more For your guests, a hotel package is a combination of benefits that come at a fixed price. Look into your low season occupancy rates, create lucrative packages for couples or newlyweds by adding spa and restaurant coupons. Come up with special 2-3 day packages depending upon your location like a safari, sightseeing, dance parties, etc. Think of long school vacations like fall break, spring break, summer break, etc to create family packages by adding zoo passes for kids. How a cloud PMS helps you in this? A smart cloud-based PMS helps you create multiple packages. You can set date-wise validity for each and every package that you create. A Hotel PMS even allows you to set different booking & cancellation policy for every package. You can also define which of your packages are refundable and non-refundable. Once you are done with creating desired packages, your PMS takes makes your job easier. For example - the moment your front desk staff keys in the arrival date, departure date, classification of guests (family, group, newlywed and all), the PMS them displays the applicable packages for that particular date range.
Hotelogix, a leader in cloud-based Property Management System has announced the integration of its PMS with Beonprice, a leading provider of revenue optimization solution based on Artificial Intelligence to hotels. This strategic integration is designed to help hotels leverage business insights to price their rooms better and achieve improved profitability. Speaking on this development, Prabhash Bhatnagar, Founder at Hotelogix said, “Beonprice is a valued revenue management solution provider among mid-segment hotels, globally. The integrated offering will help Hotelogix customers with a simplified way to execute revenue management best practices and to come up with competitive room pricing.” Beonprice helps maximize hotel profitability by finding the best combination of consumer demand and hotel supply through patented SaaS Artificial Intelligence technology. It considers a hotel’s different client segments as fundamental criteria to help the hotel determine the optimal price for various room types, markets and nights of stay to increase revenue. Currently, the company serves around 2,000 hotels across the globe. Expressing his views on this association, Rubén Sánchez Martín, Founder & CEO at Beonprice said, “We are very satisfied with this alliance. Hotelogix is a trusted PMS provider to the global hotel industry. Through our association, we are sure to help more hotels globally in their effort to boost revenue.” Commenting on this alliance, Patricia Etchehun, Revenue Manager at Hotel Mulen Tandil, Argentina said, “Due to this powerful and much-needed integration, we have been able to keep an eye on market demand and competitors in real-time. And at the same time, we can now effectively follow up the forecast achievement from the marketing plan. Based on forecast, demand and competitor, and with the invaluable tool that Beonprice & Hotelogix jointly offer, we easily come up with an accurate dynamic pricing strategy which already is showing positive results.” About Hotelogix Hotelogix provides a robust cloud-based Hotel PMS that helps hotels to automate and manage their end-to-end operations with ease. It also assists hotels to drive growth, increase revenue and to enhance their online reputation. The PMS is hosted on Amazon Web Services, and thus offers the much-needed stability and security to hoteliers. The company has rich experience in serving global markets with customers in 100 plus countries including developed geographies such as North America and Europe. About Beonprice Beonprice is a global leader of a Revenue Optimization solution based on Artificial Intelligence to maximize hotel revenue. Beonprice finds the best match between consumer demand and hotel offering through a proprietary AI SaaS technology. Beonprice already has more than 2,000 clients in more than 30 different countries, including international hotel chains such as Iberostars Hotels & Resorts, Room Mate Hotels, RIU Hotels & Resorts, Petit Palace Hotels, Lopesan, and Grupo Posadas, among others.
Opened in 1903, located in North Carolina, the Biltmore Greensboro Hotel is a 3-star boutique hotel with 26 rooms. With an impeccable guest service, this century-old property strives to offer a pleasant and memorable stay experience to its patrons. Prior to using Hotelogix, the management at the property handled its operations using an on-premise system. But, they soon found it not up to the mark as they ran into several operational bottlenecks. They could not ensure the real-time update of rates and rooms on OTAs as the PMS was unable to integrate with a channel manager. It also restricted their capabilities to set up required POS outlets. Due to the lack of automation capabilities, they had to manage operations manually. Moreover, they were unable to access the PMS and hotel data from outside of the property. Commenting on his decision to adopt Hotelogix, Brian Coleman, General Manager at the Biltmore Greensboro Hotel said, “Our search for the right cloud PMS led us to review few popular PMS providers. But we decided to go with Hotelogix due to its user-friendliness, rich and insightful reporting features and comprehensive automation capabilities.” Biltmore Greensboro Hotel has been able to see many benefits in the last three years since they started using Hotelogix. They have registered an overall increase in revenue by 40% which comprises 40% increase in direct booking and 20% increase in booking coming from OTAs. “With real-time and error-free distribution over OTAs, overbooking has become zero. Our operating costs have come down drastically since we’ve cut down on commissions, labor and overall reservation costs. It has also helped us save numerous man-hours, and we now get to spend the same building guest experience,” Brian added. Commenting on this, Aditya Sanghi, Co-founder & CEO at Hotelogix said, “Benefits witnessed by the Biltmore Greensboro Hotel is a testimony to our commitment towards empowering progressive hotels achieving desired business goals. We will continue to help our customers the way they leverage today’s smart hospitality technology via our cloud PMS.”
It is common knowledge that the hotel business is extremely time sensitive. A room unsold for a night, will be unsold forever. It’s done, it’s history. There is no way to recover from that loss. You could, of course, use different hotel occupancy strategies and find ways to make up for that loss, but very objectively speaking- the time sensitivity is immense. This need to sell as many rooms as possible, every single day, is ubiquitous in the hospitality space. And one of the best things to happen to hoteliers in this regard is the concept of “last-minute booking apps’. Thanks to innovation in technology, hotels can now increase their occupancy rate owing to these apps. Hotel last minute bookings are huge in the mobile first world we now live in. This stat will validate this statement, if you don’t believe in the power of the mobile yet. “7 out of 10 same day hotel bookings are made through smartphones.” (Source) In less than a decade, these apps have addressed a problem that has haunted the hospitality industry since… forever! Last-minute hotel booking apps help hoteliers sell their rooms, quite literally, in the last minute. Even if the room is sold at a much cheaper price than its rack rate, it is still a more lucrative option than having an unsold room! There are several geo-specific apps that cater to this specific need in the market. These apps offer last-minute hotel bookings at discounts as high as 50, 60 or even 70%. Here are the top 3 reasons why your hotel should be listed on a hotel last minute booking app: 1. There is a solution for every property type: Depending on whether you are a cozy B&B, a budget motel or a boutique hotel, you can pick an app that caters to your property type, so you address the right audience. A budget traveler will not look for last minute deals on an app that gives deals on fancy high-end hotels! Some of these apps cater to all. Research well and find the best app for your property type and size so your audience finds you easily. 2. Increased chances of selling rooms As of August 2018, the average occupancy rate of the hotel industry in USA was 71.4% (Source). Almost suggesting that 1 in 4 rooms remains unsold in hotels, on an average. By listing yourself on a last-minute booking app, you increase your chances of selling every last room that is available at your property at discounted prices. 3. Cash in on the guest experience quotient The thing about last minute booking apps is that bookers may not always find the exact room that they want. Meaning, it gives you the chance to appeal to a guest that may not necessarily be in your defined target audience. By offering such guests an impeccable guest experience, you stand the chance of getting a lovely review online which, in turn, can create more customers in the future. 4. It’s a win-win- (This one’s a bonus) These apps are immensely popular today as they address a market need and are beneficial to both hotels as well as travelers! Imagine a traveler who had to make an emergency visit to your city, for whatever reasons. He gets off his flight at 3AM and logs into an app and makes a booking for the closest hotel, or the cheapest hotel, of the cheapest deal he can find on a decent hotel. No longer is the traveler helpless to make do with the first hotel he sees! And no longer do front desk staff have to stay up all night solely depending on a walk-in guest to fill up that unsold room! Everybody wins! We’ve discussed, in this blog, just one of the ways to increase and improve hotel bookings. There are many other ways to increase bookings and occupancy. With a Hotel PMS like Hotelogix in place, you can automate several operations that will help you distribute better and in real-time, allowing travelers to have the most updated information about inventory and rates. Get in touch with us now to understand how we can help you sell more rooms.
A Cloud-based PMS or a server-based one - which of these is the better option for chain hotels to manage their operations efficiently. If there was one major disagreement amongst hoteliers across the globe, it has to be on this. While some of them are convinced about the capability of cloud-based hotel management system, many of them still believe that hotel management software on cloud is not powerful enough to do so. Before we get into this debate, let’s look at the origin of both the types of hotel management software. While the global hospitality industry was introduced to server-based Hotel PMS in the 1980s, the cloud PMS came into the market almost two decades later and its adoption has picked up quite rapidly. Getting back to the issue of which Hotel PMS is suitable for big and chain hotel operations. This becomes little complex when both variants of hotel management system claim to manage operational functions including, guest bookings, keeping guest details, housekeeping, online reservations, posting of charges, point of sale and materials/inventory management, etc efficiently. We’ve been in the industry for over a decade now and we think it is high time that we busted this myth that a cloud-based hotel management system can’t help hoteliers in effectively managing their big or chain hotel operations. We will have a step-by-step approach to debunk this widely held but false belief. Cloud is ‘current’ Hotel PMS, (the most prominent piece of hospitality technology), needs to constantly evolve, keeping in mind the ever-changing technology needs of hotels. But this is not true in case of the on-premise or server-based PMS. It’s mainly because server-based PMS providers don’t have enough scope to bring in further improvements in their applications. The codes are written in programming languages that were relevant in the 80s, but in 2018, it is unequivocally outdated. So, to sum it up, we can say that the on-premise PMS has not evolved enough to cater to the present-day technological requirements of hotels. It’s not like the server-based PMS vendors don’t understand the power of new-age cloud platform. In fact, some of them have tried to launch their cloud version by hosting their PMS on cloud. But, that’s the thing. Merely by hosting an on-premise PMS on cloud, doesn’t make it a cloud-native application. It still remains an on-premise software, hosted on a cloud server and managed by the PMS provider. However, a cloud-based PMS vendor can take advantage of the cloud environment and infrastructure to easily leverage new technology and improve upon the product and its features. Be it a small B&B with just a couple of rooms, or a large, independent hotel with 100 odd rooms or even a chain hotel, a cloud-based PMS can deliver real value to all types of properties. Cloud takes the complexity out of your already complicated hotel operations Merely adopting a PMS will help you automate your hotel operations. But, is that enough? Won’t you need to work with OTAs to generate more indirect bookings? Don’t you need to have a web booking engine to get more direct booking? What about optimizing your revenue, increasing your online ratings and score and critical business insights to make informed decisions? Phew, sounds complicated, right? If you thought the complexities end there, you’re in for some not-so-pleasant surprise. Things get more complicated when you are running a group hospitality entity – let’s say a chain with 10 hotels. And if you think you can do all of this with a server-based PMS, here are some crucial things to watch out for... You will have to spend a fortune with on premise That’s right. With a server-based PMS, you are looking at setting up expensive servers at all your 10 properties with dedicated IT staff to maintain them. You also need to constantly invest in hardware upgrades to ensure the PMS is up and running across all your properties. Plus, you do have to pay for software upgrades costs too. But with a cloud PMS, none of these worries will haunt you. You neither have to invest in servers nor in dedicated IT staff. Moreover, software upgrades are released free of cost. So, you can imagine the cost-saving is in here for you. You won't struggle to work with third-party solution providers In case of on-premise PMS, integration with operationally imperative third-party solutions like revenue management solutions, online reputation management solution and business intelligence becomes a complex task. It’s because, many third-party solutions are now on the cloud, and their integration with an on-premise application becomes a forced one. Thus, it doesn’t help you leverage the power of those solutions to the full extent. Not only does it hinder your flexibility but also restricts your freedom to work with third-party vendors. Au contraire, this is how a cloud PMS can prove its efficacy in this case. You can efficiently deal with this situation when you adopt a cloud PMS. A cloud PMS is built on common Web Standards and Open APIs to enable smooth and seamless integration with a host of third-party solutions. Take this scenario, for example- you work with over 15 OTAs. A cloud hotel management software, that comes integrated with a Channel Management Software, will make your life simple. You just need to make changes related to your rates and inventory in your PMS and the same gets updated across OTAs via the channel manager. Now, do you still believe that a cloud-based PMS is not built to ensure efficient multi-property operations? It will not help you go mobile Being installed at your property, on-premise PMS can only be accessed via desktops at your property. You can’t access the PMS and hotel data from outside of your property on your mobile. This means you can’t view your hotel KPIs while travelling. Now imagine the pain here when you have 10 properties in your group and you are out of your property. You are technically blind, right? But, if you are using a cloud PMS, you automatically gain mobility which is the most essential aspect of smart hotelier like you. You can remotely access the PMS on your mobile phone from anywhere you want to. You can view your property-level or group-level performance via mobile phone. This also helps you with a better staff to staff and staff to guest communications to ensure their (staff) improved performance and guest satisfaction. Moreover, your hotel’s millennial staff wouldn’t like to work on a server-based hotel PMS that is outdated. Around 90 percent of millennials see contemporary tech platforms as one of the most important aspects of a workplace. Because they belong to a new-age and they would like something that is new and cutting-edge. Given its user-friendliness and look & feel, your millennial staff would love to work on cloud PMS. This can lead to higher employee retention rate which would also help you save cost on new hiring and training.